ETHICS · ETHICS · Chapter 11

Building an Ethical Organization

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Ethics in Banking — Ethics in Banking.

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Q

In banking, what is the principal asset that ethics protects?

A

Trust. Ethics is the operating system protecting customer trust in banks.

Q

What is the goal of institutionalizing ethics in banks?

A

Make ethical behaviour the default daily routine, requiring no external supervision.

Q

Define conflict of interest in banking context.

A

Personal interest interfering with employee's ability to act in bank's interest.

Q

What does immediate family typically include for conflict-of-interest purposes?

A

Spouse, children, parents, in-laws, siblings, sons/daughters-in-law, brothers/sisters-in-law.

Q

Can an employee disclose account balance to a self-claimed spouse?

A

No. Confidentiality is non-negotiable; consult Legal Department if genuinely in doubt.

Q

What is a major reputational risk in fair dealing?

A

Incentive-driven mis-selling: concealing risks, inflating returns, ignoring customer risk appetite.

Q

What must bank social media policies require regarding employee profile names?

A

Employees must use real names only, never aliases.

Q

List four things social media conduct must not do per bank policy.

A

Breach customer data secrecy, erode stakeholder confidence, violate regulations, damage brand image.

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